stuart: third anniversary highlight reel. little house on the prairie, of course. >> oh, my gosh. you are just going to pull that out of thin air. stuart: you are a very powerful guy in the realm of taxation. people are very scared of you, as matter of fact. please, cue the gordon. scott page is here. he bets on other people's debt. >> i can hear it in your voice that you smoke.

[ laughter ] >> i do not. i can hear it. [ laughter ] >> i can hear that you smoke. [talking over each other] stuart: thank you, everybody. great three years. new cavuto has special coverage for the next two hours. regular coverage resumes after 1:00 p.m. eastern. ♪ >> this is a fox business special report. here is new cavuto. neil: standing before the white house parade. washington is getting ready for this event. even though it involves a reelected president. it does not have quite the same drama as it did four years ago.

it is still a pretty big event in and of itself. the address will be 20 minutes. his state of the union address is february 12. this event, at this moment, as people made their way here, could you imagine the people who got to these bleachers over 12 hours ago. they have been camped out waiting for this moment. the scene right now, you are looking at bill clinton and hillary clinton, all of the former president will be here. let's go to peter barnes who can preview this. looking at hillary clinton, i am thinking, i do not know, could she be here for years from now. let's not get ahead of ourselves. peter: vice president biden was speaking to the iowa party and

here for an election celebration. he misspoke and said, you know, i am happy to be the president of the united states or something like that. jumping the gun a little bit. officials from south carolina and new hampshire. just want to mention that. who knows what the field will look like in a couple of years. a broad overview. not looking backwards but looking forward. giving the grand vision. perhaps, mentioning some of the issues he wants to tackle. gun control, deficit reduction. as you said, waiting on the big details until the state of the union address. neil: you mentioned finding common ground. we may have gotten a hint on

that when republicans said they would look at eight debt ceiling it ascension back ago, probably, three months. what do you make of that? don: they would be blamed, roundly, thoroughly if the country went into some kind of default. the strategy, as you have been reporting, has been to try to take this issue off the table and then fight the battle over spending cuts when you have a sequestration cuts scheduled to start march 1. the current resolution running the government also running out into her three months from now. as well as, the debt ceiling

having to be raised yet again. republicans hope this is when they will be able to get the leverage to push spending cuts and entitlement reform. neil: you know, peter, what we look at -- how does that decide? there is a protocol. sitting in and around that i see ron emanuel sitting close to president clinton, how are those seats sold out? >> by protocol and tradition, all former presidents are invited, of course. both president bush, 41 and 43 the client to come. i believe president carter is not attending, but president

lyndon is. then, of course -- neil: carter is there. peter: okay. neil: i only saw that because i saw his picture. peter: other seats are given out by the committee. then there are seats that are doled out by congressional offices. about 1500 folks get to sit up there on the big landing on the west front of the capitol. neil: all right. peter, thank you very much. this is all behind the president right now. this will be the one that the president will put on his hands as he is sworn in.

it will be the fourth swearing-in for barack obama matching fdr's record. you may remember there was a private ceremony honoring the actual data itself. noon, 20th of january. this is the public ceremony. it happened twice in 2009. there was the slope of -- there was a slip up. they decided to try it again. shannon greene, i do not know whether that is a good or a bad thing, but it is a record thing. >> you are fully sworn in after four times. i think that is about as official as it can get. we are in front of the capitol.

that is where all the official activities are going on. they can see different cabinet members, members of congress arriving. we talked to some folks that were here four years ago about the differences and their experience at this time. what they are looking for this year. even though it is pretty chilly today, of course, it was a lot colder last time around. there are people who came back this time around. they are experts now. they acknowledge there is still a lot of big challenges ahead for president obama and his second term. he tweeted out this morning that he is thankful and humbled to have this second term. people are hopeful that his second term will be better for us economically as a country, but they acknowledge there is still a lot of work to be done. they are here by the hundreds of thousands, neil.

no doubt about it. neil: it is a big crowd. i understand that they revised the number of little lower late last night. they had fewer charter buses coming in. they base it on fewer reservations at local restaurants. the crowd is dramatically smaller than it was four years ago. you can well understand, but, i am wondering, the mood of that crowd. obviously, this is a big democratic event. we already have indications from a lot of republicans that are skipping out on this event. they now talk that they plan on fighting this president very aggressively on spending, tax issues, even though they seem to be getting a little bit of round on the debt issue.

postponing it for another three months. i do not see a lot of kuba going on here. >> no. we are hearing lots of things. lower court nominees. i talked to a number of republicans. they will fight on issues of spending and debt and debt ceiling. they are not ruling out. democrats have a ten-point advantage, 55-45. you only need 40. there could be a real showdown if the republicans stick together. they say they are not in the mood to, essentially, they say compromise on things that are poor principles for them. they are more geared up to fight and take on some of these legislative battles.

for the next four years we will see. we will have another midterm election that could change the makeup of the house and senate again. that will have a big impact on his last two years in office as well. neil: we are just getting a shot at sasha and melia, the president's daughters. they have grown in the last four years. and his mother in law. this is the first president in more than a generation who has his mother-in-law living at the white house. good or bad, he has his mother-in-law living at the white house. that should be, at some levels, admired. it is what it is. she is very instrumental in raising the girls and keeping them grounded. the major folks are in place. the remaining members of the president's family, including his daughter and mother in law

will establish their seats. these girls will be 15 and 18 years old for years from now. they will have spent a majority of their formative years in the white house. they have grown to be remarkable young ladies and under the duress and the pressure in the public eye, they have certainly been a credit to this president. peter barnes, i am wondering, as these kids taken their dad and the overtures that he will make to lead this nation and united, it is a very different tone now than it was four years ago. peter: that is right neil. right now, in the latest fox news poll he is up 48%. when he was first elected, he

was about 65%. there was much more optimism about his future and his presidency. now, you know, you have 90% of the folks out there who believe that the economy is in a fair to poor shape. you have two thirds of them who believe the country is headed in the wrong direction. the president wants to, as we said earlier, look forward rather than backwards and talk about his vision for the country and his inaugural remarks. neil: you are noticing the biden family coming in here. peter, you mentioned earlier how much was made about joe biden and his remarks yesterday. calling himself the president of the united states. it was a typical joe biden. nobody criticized him. he did have a number of prominent officials at his own

swearing-in. he is planning to do something. i do not know with or without hillary clinton. what did you make of that? peter: he is obviously not running again. he had about a dozen family members at his swearing-in at the national observatory. had something like 120-130 people, including those folks from south carolina, iowa and new hampshire. the vice president very smart politician. would probably like to leave the door open, potentially. again, we will see. neil: all right. we will see, indeed. you are looking at the area recognizable bill clinton and hillary clinton. she could very well be here four years from now.

the biden family making its way to sit at its designated place. the next step would be for rachelle obama to be announced and then her husband, the president of the united states, to calm -- to calm down. he is also part of the protocol here. eric cantor and his wife at the white house earlier this morning. meeting with the obama's and the biden. let's have a look as they get ready to introduce michelle obama.

neil: she is making her way down to the reviewing stand. you know, the battle of the headlines back and forth has been a great hoopla apparently over her bangs. the fact that she supports a new hairdo. i had no idea what they were talking about. she has a new hairstyle. i thought she did the dagen mcdowell. she is going back to them when dagen left them. we will see who has more success.

that was the big deal in this town. i guess, peter barnes, it is a great deal. i do not want to go back to a pageantry to it. that stuff matters. peter: absolutely. the fashion world is watching and wall street is watching. which clothing the first lady wears. she is, obviously, a fashion leader. though -- the clothing that she selects, she is wearing j. crew today. we will see if j. crew's sales go up. neil: that is true. that is very true. they are running about four or five minutes behind schedule. again, this is more protocol today. the official swearing-in has already happened because the

actual inauguration day fell on a sunday, as it has six times prior. joe biden making his way down to the reviewing stand. he will be sworn in first, by the way. both of these gentlemen were sworn in yesterday. the justice did so yesterday and will do so again today. there is talk that there is no way he would be able to put up a fight for hillary clinton. do not tell him that. he is already marching in courses of who is who around him. including top political officials. governors and the like from key states like new hampshire and iowa and south carolina.

i know it seems incredible to say that we just start this administration, they already have a great deal of intrigue thinking on the next one. old joe is moving ahead. joe biden will be the first to swear in. the president is sworn in and he will make remarks about 20 minutes in duration we are told. peter barnes, if you are still with me, the 20 minutes that the president will devote to his speech, there is some disappointment among folks who were following his campaign and his big addresses that it did not match the muster of those campaign speeches. four years ago, he spoke so broadly that he really did not have any memorable lines. do you know if the president will try to change that today?

peter: i would not expect any major lines. remember, it is one thing to be a candidate, it is another thing to be governing something. to be the president of the united states. he may be the candidate of the democratic party, but he is the president of the united nation. he has to try to appeal to everyone in this speech. that is typically the design of an inaugural address is to talk to the nation as a whole. and talk about brought teams and visions. as you said earlier, leave the details on specific agenda items for the state of the union. neil: there is a ring around the president. a major podium and that is what is part is involved here. announcing all of the

dignitaries. it was that speech delivered nearly five weeks before his death. in that crowd was john wilkes booth. that was then and this is now. this is barack obama's moment. to make a stab at uniting the country. the president well aware of the fact that it is still a very divided country. he will argue on behalf of the greater good. as a part of that committee behind him, it is really keeping to protocol. it includes the house speaker, a democrat, started out being the

speaker when he came into office. barack obama's ascent to this position, at this moment, trying to steal what many of his supporters and argue can be a very good second term. around 52%. 48% by gallup measure. that is much lower than the popularity that others have enjoyed at this point. the fame, -- you are noticing republican senators as part of this inaugural protocol. you have a equal number of republicans and democrats handing this. we should also let you know, even though we are showing you market numbers, keep in mind, our stock market closed in the united states today because of

martin luther king. this is the second time this has happened. the president is expected to make reference to that and the significance of that. you can see the crowds right now. they have been there a long while. >> they have. we hit the streets at about 5:00 a.m. there are various gates where you have to have specific tickets. people were queued up ready and waiting even knowing it could be hours until they even got to the security checkpoint. they wanted to make sure that the first moment they could get in, they would be available. the cabinet members, the vice president and of course awaiting the president continues. [ cheering ] >> you hear the cheers of the crowd here.

each time they see a friendly face or someone they are very supportive of, the cheers go up. it is cold here. folks are bundled up. kids of all ages. folks from all over the country. we just met someone from hawaii told us that she was freezing, which we understood. the president will speak 20 or 30 minutes. the longest speech in the history was from william henry harrison. he spoke for two hours with no gloves, no hat and no scarf. he died from pneumonia a few weeks later. neil: this president seems to have a top codon. the president, he just had a suit jacket on.

you are quickly in and out of these links. if he is going to speak to the nation right now, we should give away a little secret right here. that inaugural platform is heated, unlike the one where i am standing talking to you right now. mine is not heated. whatever happens at our presidential reviewing stand stays at our presidential reviewing stand. the president will have some heat where he is. a short time ago, when the president was seen on the jumbotron, there were several that just let out a big applause. forty-seven years old when he assumed this office. third youngest american to assume that office. after teddy roosevelt and john

kennedy. when they are technically sworn in, teddy roosevelt was the youngest by that measure. john kennedy that youngest elected by a different measure. this is barack obama's big moment. a man who, if you think about it, a little more than eight years ago had just emerge on the national sleep as a keynote speaker. it was pretty much off to the races ever since. hillary clinton. barack obama hoping to make history this day. everyone is seated. everyone is ready for this big moment. as you can see, melia in the background, sasha right behind her. the mother with her new bangs.

i want to make sure i am on top of these crucial developments. we are making note of the presidents who are here. george bush senior and his son are not there today. jimmy carter is there today. bill clinton is there today. and, again, joe biden, one of the longest serving senators in the history. he may be making all the moves down to make himself in opposition as well. let's take a peek at what is going on. >> the honorable charles schumer. [ cheering ] >> mr. president, mr. vice president, members of congress, all who are present, and to all

who are watching, welcome to the capital and to this celebration of our great democracy. this is the 57th inauguration of an american president. no matter how many times one witnesses this event, its simplicity, its majesty and, most of all, it is meaning. it is sacred and cautious and trusting a power from we the people to our chosen leader never fails to make one's heart beat faster as it will today with the inauguration of president barack h obama. [ cheering ] >> now, we know that we would not be here today were it not for those who stand guard around the world to preserve our

freedom. to those in our armed forces, we offer our infinite thanks. for your bravery, your honor, your sacrifice. [ cheering ] [ applause ] >> this democracy of ours was forged by intellect and argument: by activism and blood. above all, from john adams to elizabeth cady stanton, to martin luther king: by a stubborn adherence to the notion that we are all created equal and we deserve nothing less than a great republic worthy of our consent. the theme is faith in america's future. the perfect embodiment of this

unshakable confidence. i speak of the completion of the capitol dome. when abraham lincoln took office two years earlier, the dome above us was a half built eyesore, conventional wisdom was to be left unfinished until the war ended. the half finished dome finished a half divided nation. lincoln said, if people see the capital going on, it is a sign that we intend the union shall go on. despite the conflict which involves the nation and surrounded the city, the dome continued to rise.

on december 2, 1863, the statue of freedom, a woman, was placed to top the dome where she still stands today. in a sublime irony, it was a former slave, now freed american who helped to cast the bronze statue. our present times are not as careless or despairing as they were in 1863, but in 2013, far too many dow the future of this great nation and our ability to tackle our own heirs finished dome. the differences in the country and world so deep. we will never overcome them. when thoughts like these produce anxiety, fear and even despair, we do well to remember that americans have always been and still are a practical optimistic , problem-solving

people. that is our history shows, though matter how steep the climb, how difficult the problems, how have finished the task, america always rises to the occasion. america prevails and america prospers. [ applause ] and those who bet against this country have inevitably been on the wrong side of history. so, it is a good moment to gaze upward and behold the statue of freedom at the top of the capitol dome. it is a good moment to gain strength and courage and humility from those who were determined to complete the half finished dome. it is a good moment to rejoice today at this 57th inauguration all ceremony. it is the perfect moment to

renew our faith in the future of america. [cheering and applause] >> thank you and god bless the united states. [cheering and applause] >> in that spirit of faith, i would now like to introduce civil rights leader who is committing her life to extending the promise of our nation's principles to all americans. mrs. evers will lead us in the invocation. [ applause ] >> america, we are here. our nation's capital.

on this day, january 21, 2013, the inauguration of our 46 president barack obama. we, at this time to ask blessings upon our leaders. the president, vice president. members of congress. all elected and appointed officials of the united states of america. we are here to ask blessings upon our armed forces. blessings upon all who contribute to the essence of the american spirit, the american dream. the opportunity to become what mankind, womankind allows us to be.

this is the promise of america. as we sing the words of belief, this is my country, let us act upon the meaning that everyone is included.

they fought and died for this country. may their spirit infuse our being to work together with respect, enabling us to continue to build this nation. and in so doing, we send a message to the world that we are strong. fierce in our strength.

ever vigilant in our pursuit of freedom. we ask that you grant our president, the will to act courageously, but cautiously when confronted with danger and to act prudently, but deliberately when challenged by adversity. please, continue to best these efforts to lead by example and consideration and favor on the diversity of our people. bless our families all across the nation. we thank you for this opportunity of prayer to strengthen us for the journey through the days that lie ahead. we invoke the prayers of our grandmothers who taught us to

pray god, make me a blessing. let their spirit guide us as we claim this. of old. there is something within me. there is something within me that banishes pain. there is something within me i cannot explain. all i know, america, there is something within. there is something within. in jesus name and the name of all who are holy and right, we pray. amen. [cheering and applause]

>> i am pleased to introduce the award winning tabernacle choir, the brooklyn tabernacle choir to sing battle hymn of the republic. ♪ ♪ ♪ glory, glory hallelujah ♪ glory, glory hallelujah mocha glory, glory, hallelujah ♪

♪ ♪ ♪ he have loosed the fateful lighting of his terrible swift sword ♪ ♪ his truth is marching on ♪ glory, glory, hallelujah

♪ glory, glory hallelujah ♪ glory, glory, hallelujah ♪ his truth is marching on ♪ his truth is marching on ♪ with the glory ♪

♪ ♪ glory, glory, hallelujah ♪ ♪ glory, glory, hallelujah ♪ glory, glory, hallelujah ♪ his truth is marching on ♪ marching on ♪ glory, glory, hallelujah ♪ glory, glory, hallelujah

♪ glory, glory, hallelujah ♪ his truth is marching on ♪ marching on ♪ his truth is marching on ♪ ♪ [cheering and applause]

>> please, join me in welcoming my colleague and my friend, the senator from tennessee, the honorable lamar alexander. [cheering and applause] >> mr. president, mr. vice president, ladies and gentlemen, the late alex haley, the author of ruth's lived his life by these six words, find the good and praise it. today, we praise the american tradition of transferring or reaffirming a man's power in the inauguration of the president of the united states. we do this in a peaceful orderly way. there is no mob, no clue, no insurrection.

this is a moment when millions stop and watch. a moment most of us always will remember. it is a moment that our most conspicuous and enduring symbol of the american democracy. how remarkable that this has survived for so long. in such a complex country. so much power is at stake. the restraint to respect the results. last year at mount vernon, a2 or guide told me that our first president george washington once opposed this question, what is most important washington asked of this grand experiment, the united states and in washington answered his own question in this way. not the election of the first

president, but the election of its second president. the peaceful transfer of power is what will separate our country from every other country in the world. so today we celebrate the 57th inauguration of the american president find the good and praise it. now, it is my honor -- [ applause ] >> it is my honor to introduce the associated justice of the supreme court, sonia soto mark, for the purpose of the oath of office for the president. would everyone, please, stand. >> thank you.

>> mr., vice president, please, raise your right hand and repeat after me. i, joseph r biden junior, do solemnly swear. >> i, joseph r biden junior, do solemnly swear. >> that i will defend and support the constitution of the united states against all enemies far foreign and domestic. >> against all enemies foreign and domestic. >> i will bear true faith and allegiance. >> got a take this obligation freely. >> that i take this obligation freely. >> without any reservation or purpose of evasion. >> without any mental reservation or purpose of evasion. >> and that i will well and faithfully discharge. >> and that i will well and faithfully discharge the back the duties of the office upon which i am about to enter.

>> the duties of the office upon which i am about to enter. >> so help me god. >> so help me god. >> congratulations. [ applause ] ♪ ♪ neil: the vice president is always the first sworn in. joe biden joked about this four years ago, he was technically higher status than barack obama until minutes later when he was sworn in himself. at the convention he said, i do not know about any stories of

old white men not supporting barack obama. if forever endeared him to the president. on this inaugural day, this special moment. ♪ all beautiful ♪ for spacious skies ♪ for amber waves of grain ♪ for purple mountain majesties ♪ above the fruited plain ♪ america ♪ america ♪ god shed his grace on me ♪ and ground with brotherhood

♪ from the to sea to shining sea ♪ from the to shining sea ♪ ♪ [cheering and applause] >> it is my honor to present the chief justice of the united states, john g roberts junior who was administering the presidential oath of office. everyone, please rise.

>> please, raise your right hand and repeat after me. i, barack obama do solemnly swear. >> i solemnly swear. >> that i will faithfully execute. >> that i will faithfully execute. >> the office of president of the united states. >> the office of the president of united states. >> ambled to the best of my ability. >> and will to the best of my ability. >> preserve, protect and defend. >> the constitution of the united states. >> so help you god. >> so help me god. >> congratulations, esther president. [cheering and applause] ♪ neil: all right, for the fourth time in the last five presidencies, dating back to

ronald reagan, a president has been sworn into a second term. this is the first free time succession of dual elected presidents. , jefferson, james madison and james monro. bill clinton, two terms and, of course, barack obama now starting his second term. a very unusual moment in american history to see this happen. twenty-one gun salute honoring this historic moment takes place. it is a tradition for president dating back to woodrow wilson. >> ladies and gentlemen -- neil: now, the president gets the chance to tell the nations his goal.

>> the president of the united states of america, barack h obama. [cheering and applause] >> thank you. [cheering and applause] >> thank you. thank you so much. vice president biden, mr. chief justice, members of the united states congress, distinguished guests, and fellow citizens,

each time we gather to inaugurate a president, we bear witness to the enduring strength of our constitution. we affirm the promise of our democracy. we recall that what binds this nation together is not the color of our skin or the tenets of our faith or the origins of our names, what makes us exceptional , what makes us american is our allegiance to and idea articulated in a declaration made more than two centuries ago. we hold these truths to be self evident. that all men are created equal. [cheering and applause] >> that they are endowed by

their creator with certain unalienable rights that among these are life, liberty and the pursuit of happiness. today, we continue a never ending journey to bridge the meaning of those words with the realities of our time. for history tells us, that while these truths may be self-evident, they have never been self executing. while freedom is a gift from god, it must be secured by his people here on earth. the patriots of 1776 did not fight to replace the tyranny of a king with the privileges of a few or the rule of a mob, they gave to us a republic, a

government of and by and for the people and trusting each generation to keep safe our founding creed. and for more than 200 years we have, through blood drawn by lasch and sward, we learn that no union founded on the principles of union and equality could survive. we made ourselves a new and bowed to move forward together. together, we determined that a modern economy needed railways and highways, schools and colleges to train our workers, to gather we discovered that a free market only thrives when there are rules to ensure competition and fair play. to gather, we resolve that a great nation must care for the

vulnerable and protect its people from life hazards and misfortunes. through it all, we have never relinquished our skepticism of central authority, nor have we so, to the fiction that all societies ill can be covered through government alone. our assistance on hard work and personal responsibility. these are constants. we have always understood that when times change, so must we. the founding principles require new responses to new challenges. that preserving our individual freedom requires collection.

no single person can train all the math and science teachers we will need to equip our children for the future. orville the roads and networks and research labs that will bring new jobs and businesses to our shores. now, more than ever, we must do these things together, as one nation and one people. [cheering and applause] this generation of americans has been tested by crises that prove our resilience. a decade of war is now ending. [cheering and applause] >> and economic recovery has begun. [cheering and applause]

>> america's responsibilities are limitless. diversity and openness. youth and drive. an endless capacity for risk and a gift for reinvention. my fellow americans, we are made for this moment and we will seize it so long as we seize it to gather. [cheering and applause] for we, the people, understand the country cannot succeed when a shrinking do well and a few barely make it. [cheering and applause] we believe that america must rest upon the broad shoulders of a middle-class.

we know that america thrives when every person can find independence and pride in their work. we are true to our greed when a little girl born into the bleakest poverty know she has the same chance to succeed as anyone else because she is an american. she is equal, not only in the eyes of god, but of our own. [cheering and applause] we understand that our programs are inadequate to the needs of our time. we must harness new ideas and technology to remake our government, revamp our tax code, reform our schools and empower our citizens with the skills they need to work harder, learn more and retire. while the beams will change, our purpose and doers. a nation that rewards the effort and determination of every

single american. that is what will give real meaning to our greed. we, the people, still believe that every citizen deserves a basic measure of security and dignity. we must make the hard choices to reduce the cost of healthcare and the size of our deficit. but we reject the belief that america must choose between caring for the generation that built this country and investing in the generation that will build its future. [cheering and applause] >> for we remember the lessons of our past. when years were spent in poverty and parents of a child with a disability had nowhere to turn. we do not believe that in this

country freedom is reserved for the lucky or happiness for the few. we recognize that no matter how responsibly we left our lives, anyone of us, at any time, facing a job loss or a sudden illness or a home slipped away in a terrible storm, the commitments we make to each other through medicare, medicaid and social security, these things strengthen us. [cheering and applause] they do not make us a nation of takers, they free us to take the risks that make this country great. [cheering and applause] >> we, the people, still believe that our obligations as americans are not just to ourselves, but to all posterity. we will respond to the threat of

climate change. knowing that the failure to do so would betray our children and future generations. [cheering and applause] >> some they still deny the overwhelming judgment, but none can avoid the devastating impact of raging fires and crippling droughts and more powerful storms. the path towards sustainable energy sources will be bald and sometimes difficult, but america cannot resist this transition. we must lead it. the technology that will power new jobs and new industry, we must claim its promise. that is how we will not obtain our economic vitality.

that is how we will preserve our planet. that is what will lead meaning to the creed of our fathers declared. we, the people, still believe that enduring security and lasting peace do not require perpetual war. [cheering and applause] our brave men and women in uniform, tempered by the flames of battle, are unmatched encourage. our citizens seared by the memory of those know too well the price that is paid for liberty. the knowledge of their sacrifice will keep us forever vigilant against those that would do us harm. we are also airs to those that

won the peace and not just the war. who turned sworn enemies into the surest of friends. we will defend our people and uphold our values through strength of arms and rule of law. we will show the courage and try to resolve our differences with other nations peacefully. not because we are and naïve, but because engagement cavort in early lift suspicion and fear. america will remain the anchor of strong alliances in every quarter of the globe. we will renew those institutions that extend our capacity. we support democracy for a show call for africa, to the americas to the middle east.

we must be a source of hope to the poor. the sick. the marginalized. the victims of prejudice. it requires the constant advance of those principles to our comic read describes. tolerance and opportunity. human dignity and justice. we, the people, the clerk today that the most evident of truth, that all of us are created equal. the star that guides us just as it guided our forebears, just as they guided all those men and women song and on song to hear preacher say that we cannot walk a loan.

to hear a claim proclaimed that our individual freedom is bound to their freedom of every soul on earth. [cheering and applause] it is now our generation task to carry on what those pioneers began. for our journey is not complete until our wives, mothers and daughters can earn a living equal to their effort. [cheering and applause] >> our journey is not complete until our gay brothers and sisters are treated like anyone else under the law. for if we are truly created equal, then surely the love we commit to one another must be equal as well. [cheering and applause] >> our journey is not complete until no citizen is forced to wait for hours the right to

vote. [cheering and applause] >> our journey is not complete until we find a better way to welcome the striving, hopeful immigrants who still see america as a land of opportunity. until bright young students and engineers are enlisted in our workforce rather than expelled from our country. [cheering and applause] our journey is not complete until all of our children, from the streets of detroit to the quiet lanes of newtown, know that they are cared for and cherished and always safe from harm. that, is our generation's task. to make these rights, these values of life and liberty and the pursuit of happiness real for every american.

being true to our founding documents does not require us to agree on every contour of life. it does not mean we all defined liberty in exactly the same way or follow the same precise path to happiness. progress does not compel us to settle century long debates about the role of government for all time, but it does require to us to act in our time. [cheering and applause] >> for now decisions are upon us. we cannot afford delay. we cannot mistake absolutism or principal. or substitute spectacle for politics. or treat name-calling as reasoned debate. [cheering and applause] >> we must act.

we must act knowing that our work will be perfect. we must act knowing that today's victories will be only partial. it will be up to those who stand here in four years and 40 years and 400 years hence to advance the timeless spirit once covered to us in a philadelphia hall. my fellow americans, the old that i have sworn before new today, like the one recited by others who serve in this capital , it was not party or faction, we must faithfully execute that pledge during the duration of our service. the words i spoke today are not so different than the old that is taken each time a soldier signs up for duty or an

immigrant realizes their dream. it is not so different then applied that we make to the flag above and fills our hearts with pride. they are the words of citizens and they represent our greatest hope. you and i, as citizens, have the power to set this country's course. you and i, as citizens, have the obligation to shape the debate of our time. not only with the votes we cast, but the voices we lived in defense of our most ancient now use and ids. let us each now embrace with solemn duty and joy. with common effort and common purpose, with passion and dedication, let us answer the call of history and carry into

an uncertain future that precious light of freedom. thank you. god bless you. may he ever bless the united states of america. [cheering and applause] neil: a little less than 15 minutes in length. the second inaugural address. in case you thought this would be a speech without a few zingers, think again. the president made it very clear today that the battle is on on the spending and budget issues, but entitlement, well, you can only go so far. the commitments we make to each other through medicare, medicaid and social security, these things do not stop our initiatives, they strengthen us. they free us to take the risks that make this country great. he goes on to talk about climate change and storms and what he

will try to do to counteract them. some may still deny the overwhelming judgment of sign science. america cannot resist this transition, we must lead it. that is a remarkable sort of in your face, is it not, peter barnes, two republicans? peter: it is, neil. we did see the president appear to try to extend some type of all of branch here two republicans. progress does not compel us to settle the debates. it does require us to act in our time. we must act knowing that today's victories will be only partial, neil. neil: all right, peter barnes. kelly clarkson singing to this

crowd and try to put him use it, essentially, a message to the country. kelly clarkson. ♪ ♪ ♪ from every knot inside ♪ let freedom ring ♪ ♪

♪ ♪ our fathers god to the ♪ author of liberty ♪ to the we saying ♪ long may our land be bright ♪ with freedoms holy light

♪ protech the us by thy might ♪ great god our king ♪ ♪ [cheering and applause] neil: you will next hear from the youngest inaugural poet. the first latino to do so. a very strong latino presence here today. every indication i have heard is that he was electrified this crowd. sort of a young robert frost. let's wait for this moment. it should be a pretty good one. [cheering and applause]

>> mr. president, mr. vice president, america, one today, one sun rose on us today. candles over our shores, peeking over the smokies, greeting the faces of the great lakes, spreading a simple truth across the great plains and charging across the rockies. one light, waking up rooftops, under each one a story, told by

our silent gestures. my face, your face, millions of faces and mornings, each one yawning to life. krishna doing in two hours day. the penciled yellow school buses, the rhythm of traffic lights, fruit stands, apples, limes and oranges arrayed like rainbows begging our praise. silver trucks, heavy with foil or paper, berks or milk, teaming over highways alongside us on our way to claim tables, read ledgers or save lives. to teach geometry or bring up groceries, as my mother did, for 20 years so i could write this:

for olive us today. as vital as the light we move through. the same light on blackboard with lessons for the day. equations to solve, history to question or adams imagine. the i have a dream we all keep dreaming. or the impossible vocabulary of sorrow that will not explain the empty desks of 20 children marked absent today and forever. many prayers, but one light breathing color into stained-glass windows, life into the faces of bronze statues, worf onto the steps of our museums and part benches as mothers watch children slide into the day.

one ground, our ground, routing us into every stalk of corn, every head of wheat swelled by sweat and hands, hands gleaning coal or plated wood mills and deserts and hilltops that keep us warm, hans digging trenches, rotting pipes and cables, hands as warm as my father's cutting sugar cane so my brother and i could have books and shoes. the dust of farms and deserts, cities and planes, mingled by one when, our breath. breathe. here it through the days gorgeous -- the symphony of

footsteps, guitars and screeching subways. the unexpected songbird on your clothesline. here squeaky playground swings, trains whistling or was first across café tables. here the doors reopen each day for each other, saying, hello. shalom, bongiorno. howdy. , stay. or buenos dias. in the language by mother taught me, in every language, spoken into one when caring our lives without prejudice as these words break from my lips. one sky, the mississippi worked their way to the sea. think the work of our hands.

weaving steel into bridges. finishing one more report for the boss on time. stitching in other world or uniform. the first stroke on a portrait or the last floor on the freedom tower jutting into the sky that yields to our resilience. one sky, to which we sometimes lift our eyes tired from work. some days guessing at the weather of our lives. some days giving thanks for a love that loves you back. sometimes praising a mother who knew how to give or forgiving a father who could not give what you wanted. we had home through the cloth of rain or weighted snow or the

plum blush of dusk, but always, always home. always under one sky. our skype. and always one mood like a silent drum tapping on every roof top in every window of one country. all of us facing the stars. hope, a new constellation, waiting for us to map it. waiting for us to name it. together. [cheering and applause] neil: the young poet, the youngest inaugural poet in american history. the first latino.

everyday life into the majesty of our purpose here and lie. robert frost who you may famously broke all had his notes blinded by the sun and 61. if you also recall, those of age, robert frost had memorized his remarks and they went off fairly much without a hitch. pretty much like this young man's. and now, a benediction. >> let us pray. gracious and eternal god, as we conclude the second inauguration of president obama, we ask for your blessings as we seek to become caught in the words of martin luther king, citizens of a beloved community, loving you and loving our neighbors as ourselves. we pray that you will bless us with your continued presence because without it, hatred and arrogance will affect our

hearts. with your blessing, we know that we can break down those walls that separate us. we pray that you are buzzing today because without it, mistrust, with the blessing of your presence, we know that we can renew the ties of mutual regard we can form our life. we pray with your blessing because without it, suspicion, despair and fear of those different than us will rule our life. but with your blessing, we can see each other created in your image. a unit of god's grace, unprecedented, irrefutable and irreplaceable. we pray for your blessing because without it, we will see only what the eye can see.

but with the blessing, we can see we are created in your image. whether brown, black or white, male or female, first generation immigrant american or daughter of the american revolution, gay or straight, rich or poor, we pray for your blessing because without it, we would only see scarcity in the midst of abundance. with your blessing, we will recognize the abundance of the gifts of this good land with which you have endowed this nation. we pray for your blessing. bless all of us. privilege to be citizens and residents of this nation with a spirit of gratitude and humility that we may become a blessing, the nations of this world. we pray that you will shower

with your life giving spirit, the elected leaders of this land, especially barack, our president and joe, our vice president. fill them with the love of truth and righteousness that they may serve this nation a bully and be glad to do your will. and now their heart with wisdom and perseverance. men and women throughout this nation can find with one another the fulfillment of our humanity. we pray that the president, vice president, and all in political authority will remember the word of the profit micah. what this will require of you, but to do justice, to love kindness and always walk humbly with god.

mr. president, mr. vice president, may god bless you all of your days. with all of this we pray in your most holy name. amen. [cheering and applause] neil: rounding out today's event. before the president makes his way to the congratulation all luncheon. a woman who only goes by one name, beyoncé. >> beyoncé accompanied by the u.s. marine band. following the national anthem, please remain at your place while the president party exit the platform.

♪ all say can you see ♪ ♪ by the dawns early light ♪ what so proudly we hailed ♪ at the twilight's last gleaming ♪ ♪ whose broad stripes and bright stars ♪ ♪ through the perilous fight ♪ o'er the ramparts we watched

♪ were so gallantly streaming ♪ and the rockets red glare poco the bombs bursting in air ♪ ♪ gave proof through the night ♪ that our flag was still there ♪ zero say, does that star-spangled banner yet wave ♪ ♪ o'er the land of the free ♪ and the home of the brave ♪ the brave

♪ [cheering and applause] neil: she has always been a favorite of the president and the first lady. they requested that she be here for the inauguration. she said it would be her honor for the president and the country. that wraps up the formal inaugural festivities. there is a congressional luncheon. this dates back to william

mckinley. it is with leaders of the house and senate. they exchange official gifts and that sort of thing. wishing the best for the president. part of an olive branch. they will push and likely approve and extension and that debt ceiling for another three months. that will make it presumably to may 19. that is going three months longer than we had originally thought. more time, they argue, to get their spending cuts in order and the president to do the same. they are pushing for the extension right now. the dollar amount would probably be whatever you consider, one quarter of $1.3 trillion. to keep the government operating. as everyone leaves the presidential podium and makes their way to this congressional

luncheon, the other that is said to hold a major event, part of this pageantry for most republicans and democrats. the first all all branch. they will be keeping with the day to keep the president on board and themselves on board. they will give themselves a little bit of breathing room. i am coming to you live from what we'll be right now the presidential parade reviewing stand. it is just right outside the white house.

i mean is where you will have the president and their vice president families. it was a lot colder than it was a four years ago. i am holding up okay. the difference will be, that we may not be little kids running back and forth from that structure to the white house. now, they are all has-beens as they understand it very, very well. more family members and friends have been invited. it is hard to see around this area right outside the white house. some of these people have been sitting here since early this morning. most of the seats and bleachers

were filled this morning. that is a long, long time. that shows you how loyal some of these folks are. some went off by lottery, others were given by friends of the president, friends of the party. there are a lot of enthusiastic folks here. it is everybody's town. as people drift away from the washington mall right now. this crowd is about half what it was four years ago. it is still a very big crowd. 500,000 to 700,000. then you count the charter buses. what if you walked. what if you took a cab. where growth is, these numbers are fairly reliable.

it was that inauguration i became famous for testing and doing what is right to honor our brothers. that was then, this is now. i don't think you have to have any political warnings. he did have a few moments where he could reach out and say republicans, we have to work together. medicare, medicaid, social security, we have our obligations. we have our responsibility. they make us a nation of great people. this will be tested again and again in the ensuing weeks and months to come. peter barnes, you have had a chance to listen in and taken, i

am sure george share of inaugurations. this speech, in particular, and the message that was clear, it was a pointed finger and a reminder that we can work together, but these things i hold sacred. that is, i guess, entitlement. peter: absolutely. no question. you are right, he did, also call out conservative republicans. those tea party republicans who he has accused of being unmovable, unmoved in their positions saying "we cannot mistake absolutism for principal or substitute spectacle for politics or treat name-calling as reason debate." as you know, in the last couple major boat, both were extending the bush tax cuts for all, but the wealthiest.

also in a hurricane sandy really package. the president has had to rely in the house on a coalition of almost all of the democrats and a handful of republicans. neil. neil: it is interesting that he did not give up on this idea of the privilege versus those who are simply trying to get by. i wondered, was he trying to say get ready for more going after the rich? it was nancy pelosi and chuck schumer who said they believe taxes on the rich should go up. more taxes on the wealthy and the rich should just get over it. what do you make of that tone? >> i think you are absolutely right about that. the issue of income inequality.

he said very clearly last week that he expects to see a balanced approach towards deficit reduction going forward. that includes more revenues. we presume that means more tax revenues from wealthier families, wealthier americans. neil: all right. this is probably one of those shots that you will not see too often. beyoncé and paul ryan. we will just leave it at that. just maybe one of those that i am the only one on the planet that makes a big deal about this. all right, going into the hall. the vice president and the president. they have a new lease on life. which at thing, what can we make of that term but we just got word from mitch o'connell that we plan to work with the president and trust he will work

with us. >> the problem is you have two very different problems. there are still about $1.2 trillion left in tax revenue that the president wanted to go after. they only got about 600 billion. he did allude to rewriting the tax code. something that perhaps democrats and republicans have been talking about doing. two very different approaches on how to do that. there is a sense of togetherness, neil, that tends to go away when you get back into governing.

now, that continues to roll into governing the country. it is not easy. neil: it is very clear that this president has the support of the american people, although, his popularity is not as high as many who come into their second term. george bush had a higher approval rating. certainly, dwight eisenhower did. richard nixon did. we are reminded, it is rare that it goes up markedly from there. it usually stays or goes down. what do you hear he will do to keep that capital going? >> back capital, as you say, tends to go, depending on how the country goes. if the economy is improving, the

president will take a measure of credit for that. he has shown some willingness, at least, in some areas to compromise. the problem is much of the same themes you are still hearing from both parties. no one will give up their principles going into this. they can continue pushing from their side. they will not give up their principles. you are hearing the same from the white house. this speech almost seems like a response to the words spoken years ago with ronald reagan. in this speech, it was very much a defensive government. when we are together, we act effectively. we need the government to act effectively and take us out of the problems that we have been having. neil: thank you very much. one of the consequential acts of a new president, this president will be, among others, cementing his request to ask at least two

senators to join his cabinet. john kerry, secretary of state and, of course, the former senator chuck hagel to make his way over to the defense. what can we expect in the next 100 days of this second term? much is made of that. is it too late for that, a continuation for that, what? >> it will be partisanship. today's idealism, the lofty goals that the country sets forth a couple centuries ago, they are very difficult to realize. particularly, this modern era of such tension and partisanship between the right and left in this country. we reject the notion of in effect serious reforms to

medicare, social security and medicaid. when he talks about climate change. immigration. the debt and deficit. how he plans to go about approaching that. it is a coated and positive message that sends a very direct message. this speech, this inaugural address is intensely political. it does send a signal to the city and the country. there are some serious serious battles over very major things coming. there was some idea that perhaps the president, because of the close nature of the romney race, only four or five percentage points against them may have sent a signal that there needs to be greater unity between the parties. the president believes there needs to be a different kind of balance of that.

that is just the beginning of the differences that will extend not just in the coming weeks, but really the next year and a half leading to the midterms of 2014. lots of aspirational rhetoric here. how the rubber meets the road on the streets of washington. after that inaugural parade is probably very much different from the hopeful change oriented rhetoric that what we have heard from is now second inaugurated president. neil: i know you have to go very soon. what did you make of republicans move to push back this old that feeling thing until may 19. in other words to give more sides both more wiggle room.

>> they announced that they will move forward with the legislation to provide a three-month extension. it is also recognition that the republicans did suffer a setback. they have to recognize the nature of divided government. it is important to recognize where the extension of this leads us. it will bring us to march. when the congress will, we are told, go for the first time forward with actually tried to pass a budget resolution this year. the timing is tactically wise for republicans. they are buying time, but creating a conflict. at exactly the most opportune time. whether or not they insist on offsets for that debt ceiling increase in the various different steps that they have been demanding unsuccessfully at the voting booth, well, they took a little delay here.

that is not to say that they are backing away from it. they will tell you privately that what they are doing is fortifying their defensive arguments, fine-tuning their argument in favor of their agenda to try to combat the newly elected president victory just months ago. it is a tactically very important move. the timing is very important. if republicans have any hope of sort of inserting their agenda into what is obviously a much more liberal contradictory one for the president which is just generally outlined in today's inaugural speech. it is meant to inspire the country and move forward. the hard work of it is not done so much at the white house. it is done by the legislators on the other end of pennsylvania avenue. the president can affect change with the public, motivate them and put pressure on congress.

the guys who have to write it are at the other end of the street and that is two houses and they are divided. on that side, the democrats control it, on that side, john boehner and the republicans do. neil. neil: not at all. carl cameron, thank you very much. it is probably a very good thing that the markets are closed today. this is republicans pushing back the debt ceiling for another few months. it would essentially be pushing it into may 2 sort of give more wiggle room to both sides to come up with either the spending cuts and/or tax increases. again, this constant kicking the can down the road does not necessarily get the rating agencies off your high needs. as this president, a couple of hours from now, start reviewing a parade in front of them, people will likely be seeing a parade of wall streeter's in

very few hours wondering when the specifics will be coming. you are looking at bill clinton and his wife hillary. they will, of course, be part of this luncheon as well. jimmy carter is there. the two bush presidents are not, senior and junior, did not make this event today. that is not an on nominally, it is not all custom for them to come. then, again, a late 2 million americans crowded this mall four years ago. far less than half doing so this go round. i would not read any significance into that. if rich edson is still with us, if you watch this, this latest overture by republicans to extend the debt limit or give themselves, as i said, more wiggle room to iron out their differences, the president risk overplaying his hand and could

they risk seeking another deadline extension of any heat? rich: absolutely. remember, the president says he is not negotiating the debt limit. it should have no strings attached to it. republicans ultimately want spending cuts. in this case they get a procedural victory. with the fight, they start to have a different fight first. you put the debt ceiling off for a few months. now you start discussing those automatic spending cuts known as a still questionnaire. they want to get this on what they call their home turf and basically talk about spending. they want to move the spending cuts conversation up and continued that through the debt ceiling. there are these number of deadlines coming up.

by doing this, they move up the spending that conversation. they hope to get the ball rolling there and hope to continue that through the next round of debt ceiling talks. remember, neil, there are two issues that the rating agencies are looking for, they want an orderly increase of the debt ceiling. they say no strings attached. you go further down into those press releases and they are saying, we want a budget deal, this year, 2013. that is something that republicans are looking for and that is something they hope to secure out of all of this. neil: peter barnes, if you are still with me, too, i want to bring you into this. secretary of state hillary clinton with john kerry. there was a clear message in the president's remarks that, of course, the u.s. will always be involved, i am paraphrasing of

course. there is clearly a pullback here. a mentality expressed by the likes of chuck hagel and, of course, john kerry that the u.s. should not be involved in each and every crisis that comes up. in other words republican critics will say surrounding that role to international agencies, united nations or europe, more to the point. the french wanting some funding and more support and what they were seeing. islamic activity and malley and elsewhere. those days, that sort of unilateral coast, you know, americana argon. peter: you also did not want to see that america's role as a superpower in the world. sometimes, events forced the united states to take action.

we saw that for example in libya. i do want to let you know, by the way, one of the things that the president did today, as you saw him, he sat down and signed a bunch of documents. among the documents he signed were for nominations to formally send for nominations to the senate for consideration, including that of john kerry to be the secretary of state. jack lew and john brennan. just wanted to let you know that, for the record. neil: we are looking at jack lew now. will he be any different than the guy he will be replacing also at this event? timothy geithner. will it be any less so now? peter: baby more acrimonious. a lot of republicans up on the

hill prefer to deal with tim geithner. they felt he was more of a policy guy. they felt like they could talk to him. they feel that jack lew has a more partisan agenda and will be more partisan in his dealings with them. perhaps, they are preparing for more difficult debates with the incoming treasury secretary. who, though, we should point out is a veteran of budget negotiations that were pretty hot and heavy pack for president clinton, back in the 1990s within speaker newt gingrich. remains to be seen. neil: we mention because of the martin luther king holiday, the markets are closed, how are they or how will they, going forward, respond to the constant delays and extensions in either matters of death or matters of almost anything budget?

it saves you from the reaper for the time being. but it does not delay the reaper significantly, does it? peter: well, it may. you know, any serious cutbacks in government spending and the impact they would have on the gdp, on the economy, we have seen some estimates coming out of the office. if the cuts do go through, it would be, what, about $100 million. that would have an impact on the economy, on economic growth, especially if they proceed and go forward with about half of them on the pentagon. big impact on defense companies and defense stocks. neil: rich, edson, if you are still with me, while the president supports a simpler tax

code, he will not do that at the expense of entitlements. very rare to state that in and address like this. it is more for a state of the union address. does that mean he has his fight on now. rich: he has not had any type of message that he would ever be willing to reduce the benefits that people receive. when you look at the inaugural address. these things do not stop our initiative. they strengthen us. they free us to take and make this country great. they defend these programs when you are looking at the debate with republicans on capitol hill looking for some type of restructuring going to the palm drive budget that has passed the house the last couple of years that would change the way that these entitlement function.

on the other side, perhaps, the change in the way things are indexed. slowing the inflation of these types of things. outside of that, you are not getting any willingness from the administration or democrats to reduce the size of payments. neil: that is why so many republicans quote the republicans comments are not encourage. nevertheless, for the third presidency in a row, a two-term or has begun. we have not seen that since james munro. ♪

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